Iran, Russia sign 4 MoUs on oil cooperation

Iran and Russia signed four Memorandums of Understanding (MoU) for cooperation in the oil sector on Sept. 9. MoUs were signed in oil and gas, petrochemical, industry and mine sector, including a MoU between Iran International Petrochemical Company and the Russian Gas Stroll to build a fertilizer plant, Shana News Agency reported on Sep.9

Iranian Oil Minister Bijan Namdar Zanganeh and Russian Energy Minister Alexander Novak signed the document at the end of the 11th meeting of Iran-Russia Joint Economic Cooperation Commission which was held in Tehran.

Zanganeh criticized the current volume of Iran-Russia trade turnover, saying the current level of $1.5 billion is not acceptable.

He underlined that the figure is capable to increase by ten times.

Zanganeh expressed hope that the signed memorandum will resolve obstacles on boosting mutual economic ties.

Iran's Deputy Oil Minister Ali Majedi said that by signing the memorandum the two countries will open a new chapter in bilateral cooperation.

It was previously reported that the two sides will discuss bartering goods for petrochemical products and chemical catalysts during the two-day talks in Tehran. However, Zanganeh rejected the claims, saying the two countries have no contract for bartering.

Novak previously said that U.S.-generated sanctions will not affect the two countries bilateral relations. Novak is in Tehran for an official visit at the invitation of Iranian oil ministry.

On Aug. 5, Russia and Iran signed a MoU for a period of five years, signaling a sharp intensification in economic cooperation between the two countries. The document lays the foundation for a comprehensive multi-billion dollar deal for trade in the oil sector between the two nations.

At the time Russian Energy Ministry said that the memorandum provides for the expansion of trade and economic cooperation in the fields of construction and reconstruction of power generating capacity, the development of power grid infrastructure, the oil and gas sector, as well as the supply of machinery, equipment and consumer goods.